Posted: 12/3/2009 7:21:38 PM EDT
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I have been looking to buy a small house or town-home where my son is going to school as an investment and a place for him to live rather than spending money on an apartment/dorm.
There is a ton of property out there being sold as short sales. My understanding is that this is where the owner cannot make their payment and makes a deal with the bank to sell it below value so the bank gets most of their money out of it and the owner gets out of the loan? I'm told it would take 3-5 months to close (which is ok by me), but why is that? What, if any, are the additional hassles in this kind of deal? I've bought three homes in the past, but they were the done plain old fashioned way. Any insight is always appreciated. THanks. |
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The one I was looking at is supposed to go up for auction in a couple of weeks. I wonder how much it is worth to them to not deal with the auction?
I could be be an idiot for buying real estate now, but for a modest capital investment I can come out well ahead I hope. It will also serve as a hedge against inflation. |
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Be very sure that it has a clean title, it can come back and really mess up your checkbook.
I had a sweeeeet deal going, half price, on the water etc, title work was messed WAY up. Just do your homework and have someone in the know check for you to be really sure. |
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The one I was looking at is supposed to go up for auction in a couple of weeks. I wonder how much it is worth to them to not deal with the auction? I could be be an idiot for buying real estate now, but for a modest capital investment I can come out well ahead I hope. It will also serve as a hedge against inflation. They have large blocks of them auctioned - so it isn't any real sweat to them. Who know - you may be able to do well at auction. Just make sure you have a thorough inspection - or leave a lot of room for repairs. |
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Isn't that what title insurance is for at closing? Can you be more specific about the checkbook thing? Liens on the property You can check that out your self at the town hall or have an attorney check. Bingo! If you get it wrong you will not be able to get title insurance. Also with these fast times in real estate, not everything is listed at town hall and it best for your legal council to be wrong so you have recourse and assistance. Just have the legal backing of an attorney, they will not write a title opinion that they do not feel good about, so it works in your favor. As for the checkbook, well it can cost you if you thought you had a clear title and then you did not. |